Iphones In China....
http://www.reuters.com/article/2013/09/11/us-apple-iphone-china-idUSBRE98A0A520130911
When corporations sent all the jobs to China, they said they had to do it because they need to stay competitive. Wall Street cheered. Yay these savings are a great thing.
We were told the Chinese market is the next great frontier. They have over a BILLION people just waiting to buy all the American products (made in China). Sending jobs over there would help build their buying power.
I have said many times that was the dumbest thing I ever heard. People making slave wages aren’t going to be buying expensive Iphones (or anything else). People scoffed at my viewpoint. They said I didn’t know what I was talking about.
Today Apple knows exactly what I was talking about as they struggle to sell expensive Iphones to poor Chinese. All the other Smart Phone competition is driving down prices (bad for Apple) and now Wall Street is not happy with Apples outlook.
Apple made a cheap Iphone (specifically to sell to poor Chinese) but it turns out it is STILL too expensive. That is because China manipulates their currency to always be worth less then the dollar. This insures short sided companies (like Apple) will always send their manufacturing jobs over there to save money.
But when Apple tries to maximize their price (while selling products in China) the entire scheme falls apart. American workers might make more money (which companies despise) but they also then have money to go buy expensive Iphones. That is how an economy is supposed to function. That is why Apple sells more Iphones in American then in China (Even though China has over 3X the amount of people)
If the Americans are unemployed, and the Chinese are making slave wages, then you end up stuck. That is where Apple finds themselves. The US market is getting saturated, and The Chinese market is large and poor.
So Congrats Apple, you painted yourself into a corner. Good luck explaining that to your A.D.D investers on Wall street.
Maybe next time they should plan it a little better.
When corporations sent all the jobs to China, they said they had to do it because they need to stay competitive. Wall Street cheered. Yay these savings are a great thing.
We were told the Chinese market is the next great frontier. They have over a BILLION people just waiting to buy all the American products (made in China). Sending jobs over there would help build their buying power.
I have said many times that was the dumbest thing I ever heard. People making slave wages aren’t going to be buying expensive Iphones (or anything else). People scoffed at my viewpoint. They said I didn’t know what I was talking about.
Today Apple knows exactly what I was talking about as they struggle to sell expensive Iphones to poor Chinese. All the other Smart Phone competition is driving down prices (bad for Apple) and now Wall Street is not happy with Apples outlook.
Apple made a cheap Iphone (specifically to sell to poor Chinese) but it turns out it is STILL too expensive. That is because China manipulates their currency to always be worth less then the dollar. This insures short sided companies (like Apple) will always send their manufacturing jobs over there to save money.
But when Apple tries to maximize their price (while selling products in China) the entire scheme falls apart. American workers might make more money (which companies despise) but they also then have money to go buy expensive Iphones. That is how an economy is supposed to function. That is why Apple sells more Iphones in American then in China (Even though China has over 3X the amount of people)
If the Americans are unemployed, and the Chinese are making slave wages, then you end up stuck. That is where Apple finds themselves. The US market is getting saturated, and The Chinese market is large and poor.
So Congrats Apple, you painted yourself into a corner. Good luck explaining that to your A.D.D investers on Wall street.
Maybe next time they should plan it a little better.
posted by res17 at
September 19, 2013
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